“The kyat has hit a new low because of improvements in the American and Japanese economies,” Than Lwin, the deputy chairman of Kanbawza Bank, told Mizzima on Friday.

“As the US dollar and the [Japanese] yen are on the rise, there is an impact on our local currency,” he said.

Before the central bank set a managed float, the official exchange rate was fixed at six kyat to the dollar even though the US currency was sold on the black market for over 800 kyat.

Both the black market rate and the official rate stood at860 kyat in December 2012. The official exchange rate stood at 865 kyat on March 1.

On March 14, the kyat depreciated to a record low of 890 to the dollar. The central bank then announced on March 19 that the exchange rate had stabilized after five decades of instability.

“I would have preferred if the currency rate had risen because of the central bank's regulations, instead of against rising economies. The central bank should implement a more regulatory framework,” Than Lwin said.

“But I do not think the exchange rate will reach 1,000 kyat per dollar in the short term.”